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Philippine factory output year-on-year performance

MANUFACTURING grew for the 21st straight month last March, with production at the country’s factories up by more than a tenth at the close of the first quarter. Read the full story.

Philippine factory output year-on-year performance

Even big business advertisers are pressured to market online

For the longest time, big companies poured their advertisements on television, radio and newspapers. But as digital platforms continue threatening the traditional ones, businesses are pressured to follow the gadget-equipped crowd.

“International companies that are here are pushed a lot by their global offices or regional offices to shift to digital marketing,” said Henry de Chaille, the industry manager of Google Philippines, a.k.a. the local office of the world’s most iconic search engine. Speaking to SparkUp at the sidelines of a panel discussion organized by La French Tech Philippines on May 4 at the QBO Innovation Hub in Makati City, he continued: “We also see, especially during the last months, a big shift among local companies—particularly conglomerates—that are asking more questions on how they can fully leverage digital [platforms].”

A report by London‑based data and business research provider IHS Markit released in December last year forecast that product advertising in the world will be executed mostly online in the next five years, overtaking television as the main global advertising platform. The report added that digital advertising accounted for nearly $160 billion or 30% of the world’s $540 billion advertising revenue in 2016, with traditional marketing means such as TV, print, and radio trailing behind.

Working at Google, which is also engaged in online advertising technologies, Mr. de Chaille is put in a position where he can see how companies are adjusting to the disruptive platform. He develops advertising business for Google, as well as video‑sharing website YouTube, in the country and provides digital transformation support and advertising solutions to fast‑moving consumer goods companies.

Among the “changes” that big brands are tackling, he enumerated, are the following: making their mass reach more customized, integrating digital marketing into their entire marketing, and, most importantly, focusing on brand relevance wherein they engage and not just push advertisements.

Art Erka Capili Inciong

At the forum, other tech VIPs pitched in. Laurent Goirand, the head of the world’s largest media investment group GroupM in the Philippines, said he expects digital marketing to flourish. He added that the surge of digital marketing in the Philippines is attributed to the country’s growing economy: “A growing country means growing marketing budget because they are directly connected. A growing country means you (companies) need to sell your products all the more and you need to spend all the more.”

According to Marcy Venezuela, President and CEO of Xurpas Enterprise, the growth in digital marketing is also due to the continuous surge of Filipinos online as well as the consumption of more electric devices in the country. Leading a company that provides mobile enterprise solutions to corporate clients, Ms. Venezuela is a witness to the impact of digitalization on the marketing landscape.

Ms. Venezuela also pointed out that with the flourishing of this marketing platform comes huge responsibilities, especially in the aspect of security. “We have to revise or refresh our policies or legislations for online commerce,” she told SparkUp.

Technology has changed the marketing landscape in the country—that’s old news. But with Filipinos’ seemingly unending patronage of gadgets, companies shouldn’t only catch up with the crowd, they should figure out, yet again, how to lead it.

Economic outlook for Asia and the Pacific

Real gross domestic product actual data and latest projections.

Economic outlook for Asia and the Pacific

Nick Joaquin in the age of fake news

The first version of this article referred to the Philippine High School for the Arts as Makiling High School for the Arts. It also stated that Mr. Pete Lacaba was imprisoned because of his poem. He was, in fact, linked to subversive acts. These errors have been corrected.

National Artist for Literature Nick Joaquin would have celebrated his 100th birthday last May 4, had he still been alive. (Or maybe he wouldn’t, the man was said to prefer keeping his own birthday a secret.) Famous for his novels and short stories, some of which had been required reading for high school students, Mr. Joaquin also wrote news features in another name: Quijano de Manila. His nom de plume was an anagram of his last name, which roughly translates to the Spanish for “gentleman” and calls back to Mr. Joaquin’s favorite novel: Don Quijote by Miguel de Cervantes.

As Quijano de Manila, Mr. Joaquin wrote several stories for the Free Press, and eventually the Asia Philippines Leader, ranging from several topics and news beats. These stories were eventually collected into series of reportages, which include Reportage on PoliticsReportage on the MarcosesReportage on Crime and Reportage on Lovers. Mr. Joaquin was said to drink one beer in the morning at home while writing his stories, take a midday siesta, take another bottle of beer in the afternoon while typing his stories down at the Free Press office, and then go out drinking at night. He was also said to drink while interviewing his sources.

But how is Quijano de Manila different from the creative writer of florid prose and poetry, who thought in Spanish but wrote in English and brought the gothic from the bleak Victorian homes of England and America to our own colorful doorsteps? Why did he have to write in another name?

Art Samantha Gonzales

CREATIVE NEWS

“He wanted to distinguish himself from being a creative writer to being a journalist,” Rosario Joaquin‑Villegas, Mr. Joaquin’s niece and executor of his estate, told SparkUp at the side of He Lives: The Centennial Celebration of National Artist for Literature Nick Joaquin at the Cultural Center of the Philippines on May 4. “But eventually the distinction didn’t matter to him anymore.”

Indeed, Mr. Joaquin himself said so about his two personas and the rift between creative writing and journalism, with a theatrical flair, when he accepted his Ramon Magsaysay Award for Literature in 1996: “Many think I am a sort of Dr. Jekyll and Mr. Hyde—although they’re not at all agreed about which of me is Dr. Jekyll and which is Mr. Hyde.”

“The question of Journalism versus Literature? no longer has to be asked,” he added. “The old feud is over and the two rivals are now more or less on even terms. If journalism has been upgraded to literature, literature is being reinvented as a species of reportage. In the some five decades I have been in journalism, those are the developments that I find most moving—because my own writing career has moved in the same direction: from fiction to reportage, and from reportage to non‑fiction as literature.”

But Ms. Joaquin‑Villegas said that her uncle would never be a source of fake news. “First of all, Tito did his research. He would never release fake news,” she said. “He had integrity, and he would really dig (for information). No fake news could come out of him because of his research and integrity.”

“The millennials, what they can learn from him, he can teach us where we came from. For me, that’s the most important thing millennials can learn,” she said. She added that it made her very happy to have Mr. Joaquin’s A Question of Heroes (1977), a collection of essays on key figures during the Spanish period, to be credited as a source for the popular film Heneral Luna (2016).

SparkUp also spoke with Marra PL. Lanot, a poet and essayist of feminist works and friend of Mr. Joaquin. “There’s always a place for Nick’s style because Nick always treats his subjects in a humane way. It’s the pros and cons, the negative and positive traits of the subject,” Ms. Lanot said.

As for what the current generation could learn from reading Nick Joaquin, she said: “They’ll learn how to understand the subject, how to understand history, and how to understand their own nation—to understand, appreciate and to love your fellow Filipinos.”

Ms. Lanot met Mr. Joaquin as a student, when she had decided to try out submitting a poem to him for publishing, only to find out that it was her own father who had first published Mr. Joaquin’s poem in the Manila Tribune. (“You are my discoverer!” Ms. Lanot recalled Mr. Joaquin telling her father, after he had insisted on accompanying her home to meet him, after which her father replied: “Discoverer? Who am I, Christopher Colombus?”) She eventually married writer and journalist Jose “Pete” F. Lacaba, known for his reportage on the First Quarter Storm and was incarcerated and tortured for two years during the martial law period after being linked to subversive acts. They are the parents of Kris Lanot‑Lacaba, who co‑wrote the biographical film Dahling Nick (2015) with Director Sari Raissa Ll. Dalena. Ms. Dalena is the daughter of artist Danilo Dalena, who drew editorial cartoons, cover illustrations for Mr. Joaquin’s books, and portraits of Mr. Joaquin, among other of his contemporaries, which are displayed with Mr. Joaquin’s memorabilia at the CCP.

A critic of the late strongman Ferdinand E. Marcos and his first lady, Imelda Romualdez‑Marcos, Mr. Joaquin initially did not want to accept the accolade of being a National Artist in 1976, calling the award a ploy to “deodorize” the atrocities of that period. However, he was convinced to accept so that he can use it as a leverage to get Mr. Lacaba released from prison. Witnesses to the awarding said that Mr. Joaquin spread his arms like Jesus on the cross when called to stage. He also used his position as National Artist to humiliate the former first lady in his introductory speech for her during a ceremony at the Philippine High School for the Arts, after which he was never invited to accompany her again.

Art Samantha Gonzales

NO HACK TOPICS

“As a journalist he was very professional,” Mr. Lacaba said during the Small Beer forum on the life and works of Nick Joaquin held that evening. He had worked with Mr. Joaquin as a writer and copy‑editor for the Free Press. “Even if he didn’t like the subject, if he agreed to write about it, he would interview the person.”

For Ms. Dalena, who personally did a lot of research while working on her film, Mr. Joaquin’s florid style of writing also translated to his journalistic works.

“They call it the Joaquinesque—florid, elaborate, and a bit excessive, but that’s for his prose and poetry,” Ms. Dalena told SparkUp. “A little bit of that kind of applies to his journalism, he said that things don’t always have to be dry or cold, it can be full of substance yet well constructed. There’s a certain architecture to his journalism.”

Still, that didn’t mean that Mr. Joaquin skimped on the facts to come up with a good story. “He would really go to the source,” Ms. Dalena said. “He would travel, take the long trip, and meet that person and even wait for many hours just to be able to talk directly to the source, or to that person. He’s that kind of person when he does interviews. He doesn’t rely on second‑hand information.”

“The strong sense of memory and seeing beauty in the ruins, through the rubble, that was what formed the pain and beauty of Nick Joaquin and that’s why he would write very nostalgic concepts but still be very much at the present,” she added. “He would always be able to connect the past and the present, and that is what adds richness to his writing.”

In his own words, Mr. Joaquin said, during his Ramon Magsaysay Awards speech: “You know, actors say there are no small parts, there are only small performers. So I say there are no hack‑writing jobs, they are only hack writers. If you look down on your material, if you despise it, then you’ll do a hack job.”

Art Samantha Gonzales

IDENTITY

Still, one might wonder what Mr. Joaquin would have written if he had still been alive, or if he had been born in our generation. Would he have been active on social media? (“I don’t think so, he’s a very secretive person,” Ms. Lanot said during the Small Beer forum, still, can anyone escape social media nowadays?) Would he have written about the LGBT experience, both of his own and of others, now that the world is more open these kinds of stories as opposed to how it was decades ago? (“Syoke si Nick! There’s no doubt about it,” National Artist Francisco Sionil Jose said on record in Dahling Nick.) How would he have taken the news that the very dictator that he had opposed is now buried at the Libignan ng Mga Bayani with his fellow National Artists? (“Among friends, even during the martial law dictatorship he spoke against them,” Mr. Lacaba said during the Small Beer forum. “In person he would speak his mind out, but in writing he would probably write about the time of Jose Rizal but make that also a metaphor for what’s going on today. That’s the kind of thing that he would probably do.”)

This generation is different from the generation of Nick Joaquin and his contemporaries, though the timelessness of his themes still prevail. “The identity of a Filipino today is a person asking what is his identity,” Mr. Joaquin once wrote, and that continues to be true, though less a question of whether or not Filipinos are more Spanish or more American, and perhaps more an issue of national identity vis‑a‑vis regionalist identity, as exemplified in the free‑style speeches of President Rodrigo R. Duterte, where he would often extol the Bisaya and lambast the Tagalog. Filipino folk Catholicism continues to enthral with its contrast against the orthodox and the liberal Catholic practices. There will always be love, and lust, and the contrast of conservatism. Filipinos are more openly affectionate than other Asian nations, but society’s judgment is nigh inescapable once public displays of affection and sensuality becomes “too much”.

National Artist Francisco Sionil Jose (F. Sionil Jose), in his opening speech during the event, put into grand words the importance of a writer like Nick Joaquin: “The world that Nick Joaquin that inhabited is no longer with us… But what many Filipinos don’t know that as a novelist, as a writer, Nick Joaquin was a living keeper of our national memory. This is what all writers do whether they are lousy or excellent—they are the keepers of memory and remember, without this memory, there is no nation.”

Mr. Jose, now 92 years old, had a friendship with Mr. Joaquin that allowed the two to get into heated debates on several topics, though they both agreed that Don Quixote was the “greatest novel of all time”. Mr. Jose was a wine drinker, Mr. Joaquin stuck to his signature beer. Mr. Joaquin wrote about the mestizos in Manila, Mr. Jose wrote about the colonized Ilocandia. Mr. Joaquin’s nostalgia for the Spanish period was not something that Mr. Jose shared. (“Without Spain, there would be no Rizal,” Mr. Jose recalled Mr. Joaquin argue, to which he would reply “but it was the Spaniards, not the Filipinos, who killed Rizal.”) They even fought about whether or not Jose Garcia Villa deserved to be a National Artist, with Mr. Joaquin defending his contemporary. And when he lost (“which he more often did,” Mr. Jose said), Mr. Joaquin was known to wave a white handkerchief that he had already used to blow his nose at the face of his friend to signify defeat. Wouldn’t it be nice to have a friendship like that in this age of heated debates between the so‑called DDS and the so‑called yellows?

“I look forward to how millennials would see history in their own special way,” Ms. Dalena told SparkUp. Her smile never leaving her lips, she added: “But perhaps it would help millennials if they drank more beer.”


The Aparador ni Quijano de Manila exhibit can be viewed at the Pasilyo Victorio Edades, fourth floor of the CCP this May. Ms. Dalena is working on showing Dahling Nick (1995) at more schools, starting with the Far Eastern University (FEU) and the University of Santo Thomas (UST), which lended their own collection of Mr. Joaquin’s books and memorabilia for the shooting of the film.

The Woman Who Had Two Navels and Tales of the Tropical Gothic, a collection of Mr. Joaquin’s stories, has been published by Penguin Classics last month, bringing his tales to a wider audience outside of the Philippines.

New peak for 2017

MALACAÑANG on Monday night announced the appointment of central banker Nestor A. Espenilla, Jr. as the new Bangko Sentral ng Pilipinas (BSP) governor, replacing two-termer Amando M. Tetangco, Jr. who steps down in early July. Read the full story.

New peak for 2017

Your guide to the technology behind virtual currencies (a.k.a. blockchains)

Imagine a traditional bank that processes transactions and keeps those records on its private database. To keep its operations, the bank employs people, buys equipment, rents spaces, and has several other overhead expenses—all of which it earns back by charging their customers certain fees and interests.

A blockchain is a distributed database that can be integrated with an infinite number of applications and functions, including cryptocurrency exchange and money transfer. It can cut down on costs and processing time as it does things differently: it does away with the need for employees for daily transactions and the need to buy equipment. And it does not need an office.

While cryptocurrency trading is the most widely known use for blockchains, it’s just one of its limitless uses. In the near future, most of the things we will be interacting with online will probably be blockchain‑based. Although Ethereum and Bitcoin are currently the most prevalent blockchains in existence, there are several blockchains out there.

How does it function then?

Art Samantha Gonzales

If you’ve ever used peer‑to‑peer networks like torrent downloading software, you would see that there are “seeders” for each file. Seeders are computers that have already downloaded a file and are connected to the network, thus, becoming sources of the file themselves. So you are downloading files not just from one source computer but from several computers that have the exact same file. Similarly, blockchain records (referred to as nodes) are copied to every single computer that downloads the database of the blockchain.

In essence, a blockchain outsources its computing power to the public. Blockchains draw their processing power from all the computers connected to the network. This means that if your computer is connected to the blockchain, you are contributing to the blockchain’s processing power by processing transactions for the blockchain.

With blockchains, processing transactions and copies of the database are open to all and is not under the control of a few individuals or companies, hence the promise of decentralization. And because its records have been copied by thousands (or millions) of computers from different parts of the world, corrupting the data is very difficult and practically impossible to pull off.

Art Samantha Gonzales

Computers access blockchains from different parts of the world, a.k.a. different timezones. This means you don’t have to follow a set schedule for business hours: there will always be computers waiting to process your transactions.

In the same way that your smart phone can be integrated with apps, blockchains can be used to automate several processes in the form of decentralized applications. Theoretically, blockchains can automate entire governments. In fact, some countries have already started testing blockchains for certain services, with plans to further expand blockchain usage in governance.

There is a big future ahead for blockchains, and it is not limited to currencies. Depending on what type of business you are running, there are several ways to adapt with the new technology to your model. After all, for an entrepreneur, getting ahead could mean everything for your business. Darwinism also applies in the business world: you either get onboard or get left behind.


The author is a project manager at the New York-based science news website Futurism.

Bangko Sentral unfazed by Fed tightening into 2018

By Wilfredo G. Reyes
Managing Editor

YOKOHAMA, JAPAN — The Bangko Sentral ng Pilipinas (BSP), whose Monetary Board will meet for the third time this year on Thursday, will keep its eyes glued to key macroeconomic dials even in the face of mounting views that the US Federal Reserve will speed up policy tightening next year, Deputy Governor Diwa C. Guinigundo said here on Thursday last week. Asked on the expectation aired here last Wednesday by Asian Development Bank (ADB) Chief Economist Yasuyuki Sawada that next year could see up to four US Fed interest rate increases on top of 2017’s projected three, Mr. Guinigundo — one of the contenders for BSP Gov. Amando M. Tetangco, Jr.’s post when he steps down in early July — said “the decision… on monetary policy, emerging trade and fiscal policy in the United States — they are important considerations.”

Mr. Sawada’s views add to those of a Reuters poll of Wall Street bankers in March that bared expectations of at least three more increases in 2018 to add to this year’s three, including the last Fed move that same month the news agency made the survey.

“But what is more important for us when we design monetary policy is to see the emerging price and monetary conditions in the Philippines. We look at how inflation expectations are well-anchored and the weakness or the strength of economic growth in the Philippines,” Mr. Guinigundo said in a BusinessWorld interview in Yokohama on the sidelines of the 50th meeting of the ADB’s Board of Governors.

BSP’s monetary board has so far kept policy steady — save for procedural interest rate tweaks in June last year to pave the way for an interest rate corridor system to better siphon excess liquidity and influence market rates besides — since an increase in September 2014.

Analysts widely expect the BSP to keep policy rates unchanged on Thursday on the back of manageable inflation and firm domestic demand, although some are pricing in as much as two rate hikes within the second half of 2017 to probably move in step with an expected second rate hike by the Fed by June.

“We remain data-dependent. It is difficult to paint yourself in a corner.”

Year-to-date annual Philippine inflation has hovered around BSP projections so far, averaging 3.2% as of April against a 3.4% full-year forecast coming from 2016’s actual 1.8%, although the four-month pace — which continues a marked acceleration that began in September 2016 — is slightly above the midpoint of the central bank’s 2-4% target range.

Multilateral agencies have kept a bullish view on Philippine economic growth prospects, expecting the country to be a leader in Asia and the Pacific.

The country’s 6.9% gross domestic product expansion in 2016 was the fastest in three years since the 7.1% growth in 2013, and the government now wants to sustain this pace at 6.5-7.5% this year and then spur it to 7-8% starting 2018.

The government’s GDP growth projection this year compares to the 6.9% forecast of the World Bank and the United Nations Economic and Social Commission for Asia and the Pacific, the International Monetary Fund’s 6.8% and the Asian Development Bank’s 6.4%.

ON TRUMP AND TAXES

Mr. Guinigundo said mounting expectations of an acceleration in US monetary policy tightening next year bear “[t]he apparent assumption… that the US economy has not only turned the corner but is now more robust.”

“The soft patches of growth have been addressed and the outlook is very, very encouraging,” he noted.

“If that is the premise, then the presumption is that the US economy is strong enough to absorb those seven hikes [this year and next].”

Having said that, Mr. Guinigundo said, it remains to be seen whether US President Donald J. Trump can muster enough bipartisan support for his plan to overhaul his country’s tax system within the year.

“One will have to be very careful when shepherding recovery and restoration of the economic momentum,” he said.

The Fed began its ongoing policy tightening run in December 2015 after nearly a decade of near-zero rates put in place to help the US economy then recuperate from the December 2007-June 2009 “Great Recession.” Since then, it followed its quarter-of-a-basis point hike with increases of similar magnitude in December 2016 and last March. US monetary authorities have been signalling since late last year that three hikes are in store this year, though at a gradual pace.

“You may have a long-term view of how much the economy can absorb in terms of such rate hikes, but that should be subject to actual unfolding of events, particularly both the output side and on the inflation side, especially in light of what the President of the US has been saying: that he wants to spend and spend more,” Mr. Guinigundo said.

“But spending has to be funded, and if funding is going to be done by greater indebtedness of the US economy that may not be sustainable. So i think fiscal reforms are essential and critical here.”

The Philippines is in a similar situation, as the administration of President Rodrigo R. Duterte pushes the first of four packages of its own tax reform program through Congress, starting with the House of Representatives from which all tax measures emanate by law.

The entire program is designed to raise more revenues — in the first package by a net P206.8 billion after cutting personal income tax rates and offsetting this with increases in automobile and fuel excise tax rates — while making the tax burden more equitable in order to help fund public infrastructure spending of up to P9 trillion until 2022, when the current administration ends its term.

After the Finance department submitted the first tax reform package to Congress in September last year and a House bill was filed last January, the Ways and Means committee finally approved a revised version last week after emerging from a six-week break. While it is now headed for plenary approval at the House, the landmark reform — judging by the Senate leaders’ signal — faces even greater scrutiny when the measure reaches the upper chamber. The Executive has wanted mid-year approval by both chambers.

“In the same way… We in the Philippines are saying that we need to catch up in infrastructure and the government has made some pronouncements that we will spend, spend and spend so that we can build build and build,” Mr. Guinigundo said.

“But we want to make sure that we raise the resources to make this possible and we are doing it.”

Public trust ratings of President Duterte

NEITHER his provocative style of rhetoric nor the mounting body count in his government’s drug war has dented the public’s trust in President Rodrigo R. Duterte, whose net rating has steadied in “excellent” territory for four consecutive quarters, according to the Social Weather Stations (SWS). Read the full story.

Public trust ratings of President Duterte

Performance projections for ASEAN, select major Asian economies

YOKOHAMA, JAPAN — The Philippines will be one of the fastest-growing economies in a grouping of Southeast Asia plus China, Hong Kong, Japan and South Korea as a result of policies and reforms put in place in the wake of the 1997 Asian Financial Crisis, according to estimates of an international organization formed to help prevent a repeat of a financial meltdown. Read the full story.
Performance projections for ASEAN, select major Asian economies

Wondrous Gangwon

Text and photos by Cecille Santillan-Visto

There is more to Korea than Seoul.

Good JRPG but lovers of story-driven games should stay away

By Alexander O. Cuaycong
and Anthony L. Cuaycong

Video Game Review
Atelier Firis: The
Alchemist and the
Mysterious Journey

Go see Gifted

By Richard Roeper

Movie Review
Gifted
Directed by Marc Webb